Other Things Being Equal, the Yield Required on A-Rated Bonds

question 78

Multiple Choice

Other things being equal, the yield required on A-rated bonds should be ____ the yield required on B-rated bonds whose other characteristics are exactly the same.

• A) greater than
• B) equal to
• C) less than
• D) All of the above are possible, depending on the size of the bond offering.

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Definitions:

Correlate

To possess a reciprocal relationship or link, where one entity influences or is contingent upon another.

Conscientiousness

A character quality marked by being well-organized, reliable, and having a profound dedication to responsibility.

Self-Discipline

The capability to manage one's emotions and conquer personal shortcomings, as well as the strength to follow what one believes is correct, even when faced with temptations to give it up.

Conscientiousness

is a personality trait characterized by thoroughness, diligence, and the desire to do a task well.